RRI Live!

Listen to Radio Romania International Live

Optimistic Economic Forecasts

The National Bank of Romania has lowered the inflation forecast for this year and the next to 3.1%.

Optimistic Economic Forecasts
Optimistic Economic Forecasts

, 08.08.2013, 14:20

In Romania, the inflation forecast for 2013 and for next year has been lowered to 3.1%, that is by 0.1% compared to previous figures. The Central Bank has analyzed and endorsed the quarterly inflation report, which points to a stronger disinflation process for the forthcoming period and an accelerated economic growth.



Governor Mugur Isarescu: “Our target is 2.5%. As far as our 3.1% forecast goes, we might get closer to that target by the end of the year or even sooner. The main factors that will be keeping inflation down are the prices of foodstuffs and farm products, which will go down in July, August and September, and the fact that last year these prices increased significantly. So the difference will be substantial.”



Mugur Isarescu added that the institution will do its best, using the tools available to it, to ensure that interest rates for loans in the national currency get as close as possible to the rates on foreign currency loans, so that bank clients may choose to borrow lei and thus reduce the risks related to exchange rate variations.



Mugur Isarescu: “The foreign currency resources of many banks are not as steady and low-priced as they used to be. Parent banks have become more cautious, or have problems of their own. Foreign currency loans have a visible, explicit cost, but also a hidden, uncertain cost component, and this is what triggers abusive clauses. By reducing the monetary policy interest rate and assuring adequate cash flows in the market, we will do our best to push interest rates for Romanian currency loans closer to those for foreign currency crediting.”



The new European regulations discourage foreign currency loans, the central bank governor also said. He explained that such loans have an unpredictable and highly dangerous component, which has become evident over the past few years and affected the resources of many Romanians who had thought foreign currency loans are more advantageous. The National Bank has reduced the key interest rate from 5% to an all-time low of 4.5%. At present, the average interest rate on a mortgage-backed loan in lei is 8%, as compared to 4.5% for a similar product in euros. According to analysts, taking out loans in the national currency is by 30% more expensive than in euros.

European Commission (photo: © European Union - Source: EC - Audiovisual Service / Photographer: Christophe Licoppe)
Today in the News Thursday, 21 November 2024

Political agreement on the new European Commission

    The leaders of the three major political groups in the European Parliament have given the green light to the members of the next...

Political agreement on the new European Commission
Photo: aep.ro
Today in the News Thursday, 21 November 2024

13 for Romania

    In Romania, presidential elections usually spark the greatest interest and emotions. Even more so this year, when the two rounds of the...

13 for Romania
Gas consumption in the EU (Credits: magnascan-pixabay-com)
Today in the News Wednesday, 20 November 2024

Romania’s natural gas, available for trading

On Tuesday, the Romanian company Romgaz launched its first issue of bonds on the Bucharest Stock Exchange, worth 500 million EUR. Romgaz is the...

Romania’s natural gas, available for trading
Photo: roaep.ro
Today in the News Tuesday, 19 November 2024

Romania ahead of the presidential election

Next month, President Klaus Iohannis will end his second and last five-year term in office according to the Romanian Constitution. The so-called...

Romania ahead of the presidential election
Today in the News Tuesday, 19 November 2024

Romania’s Prime Minister on a visit to Brussels

NATO welcomes Romania’s continuous efforts and its significant contribution to strengthening the Alliance and Euro-Atlantic security, NATO...

Romania’s Prime Minister on a visit to Brussels
Today in the News Monday, 18 November 2024

Downward forecast from the European Commission

Romania’s economic growth estimate has been recalculated by the European Commission (EC), at a value well below the initially established...

Downward forecast from the European Commission
Today in the News Monday, 18 November 2024

35 years since the fall of the Berlin Wall

The fall of the Berlin Wall, 35 years ago, represented for Romanians an encouragement in their fight for freedom, and the removal of the Iron Curtain...

35 years since the fall of the Berlin Wall
Today in the News Friday, 15 November 2024

European minimum wage in Romania

The law on the introduction of the European minimum wage in Romania was promulgated by President Klaus Iohannis. Prime Minister Marcel Ciolacu has...

European minimum wage in Romania

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company